Public-Private Partnership (PPP)
Any contractual arrangement between a public entity or authority and a private entity for providing a public asset or service in which the private party bears significant risk and management responsibility. For the purpose of this survey, this definition applies irrespective of the terminology used in the particular economy or jurisdiction.
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The ministry, department, or agency responsible for ensuring that the relevant assets or services are provided. It is the authority in charge of the PPP (that is, the authority responsible for identifying, preparing, procuring, awarding, and managing the PPP contract).
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The specialized government entity or team that is responsible for facilitating the PPP program.
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A framework encompassing all laws, regulations, policies, binding guidelines or instructions, other legal texts of general application, judicial decisions, and administrative rulings governing or setting precedent in connection with PPPs. In this context, the term policies refers to other government-issued documents that are binding on all stakeholders, that are enforced in a manner similar to laws and regulations, and that provide detailed instructions for the implementation of PPPs. It should not be confused with policy in the sense of a government's statement of intent to use PPPs as a course of action to deliver public services. The regulatory framework includes but is not limited to those laws, regulations, policies, and other government actions specifically dealing with PPPs. (For example, procurement of PPPs may be governed by the general procurement framework.)
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Also special purpose company (SPC) or special purpose entity (SPE), a company specifically formed to undertake a specific project (in this case the PPP project).
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An analytical tool that enables the user to assess the financial robustness of a project by representing its expected financial performance, including cash flows, returns, and the like. A financial model should not be confused with a financial proposal.
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A proposal made by a private party to undertake a PPP project that is submitted at the initiative of the private firm rather than in response to a request from the government.2